Document
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2017
OR
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 814-00646
APOLLO INVESTMENT CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland
52-2439556
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
9 West 57th Street
37th Floor
New York, New York
10019
(Address of principal executive offices)
(Zip Code)
(212) 515-3450
(Registrant’s telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x  No ¨
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ¨  No ¨
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
¨
(Do not check if a smaller reporting company)
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨  No x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class of Common Stock
 
Outstanding at February 6, 2018
$0.001 par value
 
216,523,796
 




APOLLO INVESTMENT CORPORATION
Table of Contents
 
 
Page
 
PART I. FINANCIAL INFORMATION
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
PART II. OTHER INFORMATION
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.
 
 
 
 




PART I. FINANCIAL INFORMATION
In this report, the terms the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” and “our” refer to Apollo Investment Corporation unless the context specifically states otherwise.
Item 1. Financial Statements
APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except share and per share data)


December 31, 2017

March 31, 2017

(Unaudited)


Assets



Investments at fair value:





Non-controlled/non-affiliated investments (cost — $1,494,104 and $1,510,980, respectively)
$
1,474,318


$
1,402,409

Non-controlled/affiliated investments (cost — $223,077 and $417,471, respectively)
195,484


239,050

Controlled investments (cost — $685,279 and $676,972, respectively)
682,760


675,249

Cash and cash equivalents
12,222


9,783

Foreign currencies (cost — $1,844 and $1,494, respectively)
1,876


1,497

Cash collateral on option contracts
5,547



Receivable for investments sold
1,604


40,226

Interest receivable
23,194


17,072

Dividends receivable
2,550


6,489

Deferred financing costs
14,806


17,632

Prepaid expenses and other assets
1,211


713

Total Assets
$
2,415,572


$
2,410,120





Liabilities



Debt
$
875,165


$
848,449

Payable for investments purchased
30,773


13,970

Distributions payable
32,738


32,954

Management and performance-based incentive fees payable
18,576


16,306

Interest payable
9,674


7,319

Accrued administrative services expense
2,393


2,250

Variation margin payable on option contracts
916



Other liabilities and accrued expenses
4,287


7,075

Total Liabilities
$
974,522


$
928,323

Commitments and contingencies (Note 10)





Net Assets
$
1,441,050


$
1,481,797





Net Assets



Common stock, $0.001 par value (400,000,000 shares authorized; 218,255,954 and 219,694,654 shares issued and outstanding, respectively)
$
218


$
220

Paid-in capital in excess of par
2,916,176


2,924,775

Accumulated underdistributed net investment income
91,031


88,134

Accumulated net realized loss
(1,515,575
)

(1,277,625
)
Net unrealized loss
(50,800
)

(253,707
)
Net Assets
$
1,441,050


$
1,481,797







Net Asset Value Per Share
$
6.60


$
6.74


See notes to financial statements.
1

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)

Three Months Ended December 31,
 
Nine Months Ended December 31,

2017
 
2016
 
2017
 
2016
Investment Income

 

 

 

Non-controlled/non-affiliated investments:

 

 

 

Interest income (excluding Payment-in-kind (“PIK”) interest income)
$
38,350

 
$
33,310

 
$
116,519

 
$
122,089

Dividend income

 
358

 

 
2,531

PIK interest income
1,752

 
3,361

 
5,926

 
5,331

Other income
1,487

 
936

 
5,264

 
2,984

Non-controlled/affiliated investments:

 

 

 

Interest income (excluding PIK interest income)

 
257

 
114

 
718

Dividend income
392

 
4,609

 
2,461

 
12,312

PIK interest income
2,644

 
127

 
7,582

 
296

Other income

 

 
(306
)
 
70

Controlled investments:

 

 

 

Interest income (excluding PIK interest income)
13,499

 
12,755

 
42,789

 
37,431

Dividend income
5,250

 
6,400

 
13,403

 
13,850

PIK interest income
1,379

 
5,958

 
4,046

 
15,954

Total Investment Income
$
64,753

 
$
68,071

 
$
197,798

 
$
213,566

Expenses
 
 
 
 
 
 
 
Management fees
$
12,048

 
$
12,978

 
$
36,463

 
$
40,679

Performance-based incentive fees
7,484

 
5,670

 
23,433

 
16,063

Interest and other debt expenses
12,433

 
14,473

 
40,479

 
45,704

Administrative services expense
1,693

 
1,599

 
5,061

 
5,767

Other general and administrative expenses
2,262

 
2,329

 
6,438

 
9,917

Total expenses
35,920

 
37,049

 
111,874

 
118,130

Management and performance-based incentive fees waived
(4,986
)
 
(5,246
)
 
(15,077
)
 
(16,264
)
Expense reimbursements
(148
)
 
(84
)
 
(444
)
 
(253
)
Net Expenses
$
30,786

 
$
31,719

 
$
96,353

 
$
101,613

Net Investment Income
$
33,967

 
$
36,352

 
$
101,445

 
$
111,953

Net Realized and Change in Unrealized Gains (Losses)
 
 
 
 
 
 
 
Net realized gains (losses):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
$
443

 
$
3,932

 
$
(96,704
)
 
$
(36,195
)
Non-controlled/affiliated investments
5,369

 
36,473

 
(141,472
)
 
81,047

Controlled investments

 
(1,982
)
 

 
(2,173
)
Option contracts
(614
)
 

 
(619
)
 

Foreign currency transactions
16

 
749

 
6,635

 
2,014

Extinguishment of debt
(5,790
)
 

 
(5,790
)
 

Net realized gains (losses)
(576
)
 
39,172

 
(237,950
)
 
44,693

Net change in unrealized losses:
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(12,502
)
 
5,292

 
88,785

 
70,318

Non-controlled/affiliated investments
(6,391
)
 
(53,882
)
 
150,828

 
(183,676
)
Controlled investments
4,988

 
(21,447
)
 
(796
)
 
(56,030
)
Option contracts
(12,100
)
 
(3,258
)
 
(13,973
)
 
(3,258
)
Credit default swaps

 
(788
)
 

 
(788
)
Foreign currency translations
(1,553
)
 
9,849

 
(21,937
)
 
27,106

Net change in unrealized losses
(27,558
)
 
(64,234
)
 
202,907

 
(146,328
)
Net Realized and Change in Unrealized Losses
$
(28,134
)
 
$
(25,062
)
 
$
(35,043
)
 
$
(101,635
)
Net Increase in Net Assets Resulting from Operations
$
5,833

 
$
11,290

 
$
66,402

 
$
10,318

Earnings Per Share
$
0.03

 
$
0.05

 
$
0.30

 
$
0.05


See notes to financial statements.
2

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
(In thousands, except share data)

 
Nine Months Ended December 31, 2017
 
Year Ended 
 March 31, 2017
 
(Unaudited)
 
 
Operations
 
 
 
Net investment income
$
101,445

 
$
149,243

Net realized losses
(237,950
)
 
(41,823
)
Net change in unrealized losses
202,907

 
(89,050
)
Net Increase in Net Assets Resulting from Operations
$
66,402

 
$
18,370

 
 
 
 
Distributions to Stockholders
 
 
 
Distribution of net investment income
$
(98,548
)
 
$
(76,950
)
Distribution of return of capital

 
(67,286
)
Net Decrease in Net Assets Resulting from Distributions to Stockholders
$
(98,548
)
 
$
(144,236
)
 
 
 
 
Capital Share Transactions
 
 
 
Repurchase of common stock
(8,601
)
 
(37,918
)
Net Decrease in Net Assets Resulting from Capital Share Transactions
$
(8,601
)
 
$
(37,918
)
 
 
 
 
Net Assets
 
 
 
Net decrease in net assets during the period
$
(40,747
)
 
$
(163,784
)
Net assets at beginning of period
1,481,797

 
1,645,581

Net Assets at End of Period
$
1,441,050

 
$
1,481,797

 
 
 
 
Capital Share Activity
 
 
 
Shares repurchased during the period
(1,438,700
)
 
(6,461,842
)
Shares issued and outstanding at beginning of period
219,694,654

 
226,156,496

Shares Issued and Outstanding at End of Period
218,255,954

 
219,694,654


See notes to financial statements.
3

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

 
Nine Months Ended December 31,
 
2017
 
2016
Operating Activities
 
 
 
Net increase in net assets resulting from operations
$
66,402

 
$
10,318

Net realized (gains) losses
237,950

 
(44,693
)
Net change in unrealized losses
(202,907
)
 
146,328

Net amortization of premiums and accretion of discounts on investments
(5,240
)
 
(3,769
)
Accretion of discount on notes
447

 
447

Amortization of deferred financing costs
3,575

 
4,366

Increase from foreign currency transactions
6,635

 
2,014

Payment-in-kind interest and dividends capitalized
(12,630
)
 
(22,787
)
Changes in operating assets and liabilities:
 
 
 
Purchases of investments
(789,231
)
 
(476,520
)
Proceeds from sales and repayments of investments
827,315

 
837,232

Purchases of option contracts
(8,976
)
 
(3,516
)
Purchases of credit default swaps

 
(879
)
Proceeds from option contracts
8,330

 
3,555

Net settlement of option contracts
(13,031
)
 

Decrease (increase) in interest receivable
(5,946
)
 
6,010

Decrease in dividends receivable
3,939

 
5,248

Decrease (increase) in prepaid expenses and other assets
(498
)
 
9,021

Increase (decrease) in management and performance-based incentive fees payable
2,270

 
(10,228
)
Increase in interest payable
2,355

 
3,426

Increase (decrease) in accrued administrative services expense
143

 
(879
)
Decrease in other liabilities and accrued expenses
(2,788
)
 
(2,210
)
Net Cash Provided by Operating Activities
$
118,114

 
$
462,484

Financing Activities
 
 
 
Issuances of debt
$
895,483

 
$
741,747

Payments of debt
(897,719
)
 
(994,804
)
Financing costs paid and deferred
(177
)
 
(7,871
)
Repurchase of common stock
(8,601
)
 
(37,917
)
Distributions paid
(98,764
)
 
(123,559
)
Net Cash Used in Financing Activities
$
(109,778
)
 
$
(422,404
)
 
 
 
 
Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts
 
 
 
Net increase in cash, cash equivalents, foreign currencies and collateral on option contracts during the period
$
8,336

 
$
40,080

Effect of foreign exchange rate changes
29

 
(64
)
Cash, cash equivalents, foreign currencies and collateral on option contracts at beginning of period
11,280

 
18,905

Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts at the End of Period
$
19,645

 
$
58,921

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash interest paid
$
34,081

 
$
37,487

 
 
 
 
Non-Cash Activity
 
 
 
Payment-in-kind income
$
17,554

 
$
22,047


See notes to financial statements.
4

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2017
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

Advertising, Printing & Publishing
 
 
 
 
 
 
A-L Parent LLC
 
Second Lien Secured Debt
 
8.82% (1M L+725, 1.00% Floor)
 
12/02/24
 
$
10,048

 
$
9,960

 
$
10,148

 

American Media, Inc.
 
First Lien Secured Debt
 
10.37% (3M L+900, 1.00% Floor)
 
08/24/20
 
14,267

 
13,962

 
14,623

 

 
 
First Lien Secured Debt - Letter of Credit
 
L+750
 
08/24/20
 
154

 

 

 
(23)
 
 
First Lien Secured Debt - Revolver
 
10.48% (3M L+900, 1.00% Floor)
 
08/24/20
 
1,185

 
1,185

 
1,215

 
(23)
 
 
First Lien Secured Debt - Revolver
 
12.50% (P+800)
 
08/24/20
 
356

 
356

 
364

 
(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
08/24/20
 
83

 
(35
)
 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
15,468

 
16,202

 
 
Simplifi Holdings, Inc.
 
First Lien Secured Debt
 
8.07% (1M L+650, 1.00% Floor)
 
09/28/22
 
12,170

 
11,823

 
11,804

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/28/22
 
2,400

 
(68
)
 
(72
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
11,755

 
11,732

 
 
Total Advertising, Printing & Publishing
 
 
$
37,183

 
$
38,082

 
 
Aerospace & Defense
 
 
 
 
 
 
Erickson Inc
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
09/30/18
 
$
104

 
$

 
$
(2
)
 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
12/10/18
 
37

 

 
(1
)
 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
04/01/18
 
277

 

 
(4
)
 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
06/25/18
 
3

 

 

 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
10/18/18
 
708

 

 
(11
)
 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
11/28/18
 
670

 

 
(10
)
 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
06/20/18
 
43

 

 

 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
02/02/18
 
200

 

 
(3
)
 
(8)(9)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.50%
 
03/31/20
 
1,288

 

 
(19
)
 
(8)(9)(23)
 
 
First Lien Secured Debt - Revolver
 
9.19% (3M L+750, 1.00% Floor)
 
04/28/22
 
21,021

 
21,021

 
20,706

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
04/28/22
 
20,649

 
(393
)
 
(310
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
20,628

 
20,346

 
 
ILC Dover LP
 
Second Lien Secured Debt
 
10.19% (3M L+850, 1.00% Floor)
 
06/28/24
 
20,000

 
19,549

 
19,550

 
 
PAE Holding Corporation
 
Second Lien Secured Debt
 
11.12% (2M L+950, 1.00% Floor)
 
10/20/23
 
28,097

 
27,393

 
28,272

 
(10)
Total Aerospace & Defense
 
 
$
67,570

 
$
68,168

 
 
 Automotive
 
 
 
 
 
 
 
 
 
 
 
 
 
 
K&N Parent, Inc.
 
Second Lien Secured Debt
 
10.32% (1M L+875, 1.00% Floor)
 
10/21/24
 
$
27,000

 
$
26,534

 
$
26,595

 
(10)
Total Automotive
 
 
$
26,534

 
$
26,595

 
 
Aviation and Consumer Transport
 
 
 
 
 
 
 
 
 
 
Merx Aviation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merx Aviation Finance Assets Ireland Limited (5)
 
First Lien Secured Debt - Letter of Credit
 
2.25%
 
10/01/18
 
$
3,600

 
$

 
$

 
(23)

See notes to financial statements.
5

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2017
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

Merx Aviation Finance, LLC (5)
 
First Lien Secured Debt - Letter of Credit
 
2.25%
 
10/01/18
 
177

 

 

 
(23)
 
 
First Lien Secured Debt - Revolver
 
12.00%
 
10/31/18
 
366,300

 
366,300

 
366,300

 
(23)
 
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
N/A

 
15,000

 
40,987

 
 
Total Aviation and Consumer Transport
 
 
$
381,300

 
$
407,287

 
 
Business Services
 
 
 
 
 
 
 
 
 
 
Access CIG, LLC
 
Second Lien Secured Debt
 
10.25% (1M L+875, 1.00% Floor)
 
10/17/22
 
$
50,970

 
$
49,434

 
$
50,066

 

Aero Operating LLC
 
First Lien Secured Debt
 
8.82% (1M L+725, 1.00% Floor)
 
12/29/22
 
36,520

 
35,608

 
35,607

 
(9)
 
 
First Lien Secured Debt - Revolver
 
8.82% (1M L+725, 1.00% Floor)
 
12/29/22
 
2,800

 
2,800

 
2,730

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
1.00% Unfunded
 
12/29/22
 
2,450

 
(129
)
 
(61
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
38,279

 
38,276

 
 
Almonde, Inc
 
Second Lien Secured Debt
 
8.73% (3M L+725, 1.00% Floor)
 
06/13/25
 
2,316

 
2,294

 
2,322

 
(10)(17)
Ambrosia Buyer Corp.
 
Second Lien Secured Debt
 
9.38% (3M L+ 800, 1.00% Floor)
 
08/28/25
 
21,429

 
20,917

 
20,916

 

Aptean, Inc.
 
Second Lien Secured Debt
 
11.20% (3M L+950, 1.00% Floor)
 
12/20/23
 
9,548

 
9,424

 
9,631

 
(10)
CT Technologies Intermediate Holdings, Inc
 
Second Lien Secured Debt
 
10.57% (1M L+900, 1.00% Floor)
 
12/01/22
 
31,253

 
30,428

 
30,315

 
(9)
Electro Rent Corporation
 
Second Lien Secured Debt
 
10.62% (2M L+900, 1.00% Floor)
 
01/31/25
 
18,334

 
17,846

 
17,967

 
(9)
 
 
Second Lien Secured Debt
 
10.62% (1M L+900, 1.00% Floor)
 
01/31/25
 
18,264

 
17,740

 
17,899

 
(9)
 
 
 
 
 
 
 
 
 
 
35,586

 
35,866

 
 
Ministry Brands, LLC
 
Second Lien Secured Debt
 
10.63% (3M L+925, 1.00% Floor)
 
06/02/23
 
10,000

 
9,874

 
9,869

 

Newscycle Solutions, Inc.
 
First Lien Secured Debt
 
8.57% (1M L+700, 1.00% Floor)
 
12/28/22
 
13,743

 
13,400

 
13,399

 
(9)(25)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
2.00% Unfunded
 
12/28/22
 
1,257

 

 
(31
)
 
(8)(9)(21)(23)(25)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/28/22
 
500

 
(12
)
 
(13
)
 
(8)(9)(21)(23)(25)
 
 
 
 
 
 
 
 
 
 
13,388

 
13,355

 
 
PSI Services, LLC
 
First Lien Secured Debt
 
6.56% (1M L+500, 1.00% Floor)
 
01/20/23
 
4,132

 
4,044

 
4,062

 
(9)
 
 
First Lien Secured Debt - Revolver
 
6.57% (1M L+500, 1.00% Floor)
 
01/20/22
 
79

 
79

 
78

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
01/20/22
 
159

 
(8
)
 
(3
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Revolver
 
6.50% (1M L+500, 1.00% Floor)
 
01/20/22
 
159

 
159

 
156

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
01/20/22
 
£
47

 

 

 
(9)(21)(23)
 
 
Second Lien Secured Debt
 
10.56% (1M L+900, 1.00% Floor)
 
01/20/24
 
25,714

 
25,046

 
25,148

 
(9)
 
 
 
 
 
 
 
 
 
 
29,320

 
29,441

 
 
RA Outdoors, LLC
 
First Lien Secured Debt
 
6.21% (1M L+475, 1.00% Floor)
 
09/11/24
 
7,229

 
7,090

 
7,156

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/09/22
 
1,200

 
(23
)
 
(12
)
 
(8)(9)(21)(23)
 
 
Second Lien Secured Debt
 
10.21% (1M L+875, 1.00% Floor)
 
09/11/25
 
34,200

 
33,377

 
33,516

 
(9)
 
 
 
 
 
 
 
 
 
 
40,444

 
40,660

 
 

See notes to financial statements.
6

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2017
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

Dodge Data/Skyline Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dodge Data & Analytics LLC
 
First Lien Secured Debt
 
10.50% (3M L+875, 1.75% Floor)
 
10/31/19
 
49,722

 
49,355

 
48,354

 
 
Skyline Data, News and Analytics LLC
 
Common Equity/Interests - Class A Common Unit
 
N/A
 
N/A
 
4,500,000 Shares

 
4,500

 
4,500

 
(13)
 
 
 
 
 
 
 
 
 
 
53,855

 
52,854

 
 
STG-Fairway Acquisitions, Inc.
 
Second Lien Secured Debt
 
10.73% (3M L+925, 1.00% Floor)
 
06/30/23
 
15,000

 
14,741

 
14,400

 
 
Transplace Holdings, Inc.
 
Second Lien Secured Debt
 
10.31% (1M L+875, 1.00% Floor)
 
10/06/25
 
15,000

 
14,634

 
15,094

 
(10)
U.S. Security Associates Holdings, Inc.
 
Unsecured Debt
 
11.00%
 
01/28/20
 
80,000

 
80,000

 
80,000

 
 
Total Business Services
 
 
$
442,618

 
$
443,065

 
 
Chemicals, Plastics & Rubber
 
 
 
 
 
 
 
 
 
 
Carbon Free Chemicals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)
 
First Lien Secured Debt
 
5.215% PIK
 
06/30/20
 
$
59,305

 
$
59,305

 
$
49,036

 

Carbonfree Caustic SPE LLC
 
Unfunded Delayed Draw - Promissory Note
 
0.00% Unfunded
 
06/30/20
 
6,111

 

 

 
(23)
 
 
 
 
 
 
 
 
 
 
59,305

 
49,036

 
 
Hare Bidco, Inc.
 
Second Lien Secured Debt
 
9.75% (3M L+875, 1.00% Floor)
 
08/01/24
 
13,574

 
14,412

 
15,974

 
 
Total Chemical, Plastics & Rubber
 
 
$
73,717

 
$
65,010

 
 
Consumer Goods – Durable
 
 
 
 
 
 
 
 
 
 
Hayward Industries, Inc.
 
Second Lien Secured Debt
 
9.82% (1M L+825)
 
08/04/25
 
$
25,110

 
$
24,633

 
$
24,630

 
 
KLO Holdings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9357-5991 Quebec Inc.
 
First Lien Secured Debt
 
9.31% (1M L+775, 1.25% Floor)
 
04/07/22
 
9,382

 
9,281

 
9,279

 
 
KLO Acquisition LLC
 
First Lien Secured Debt
 
9.31% (1M L+775, 1.25% Floor)
 
04/07/22
 
5,431

 
5,373

 
5,372

 
 
 
 
 
 
 
 
 
 
 
 
14,654

 
14,651

 
 
Sorenson Holdings, LLC
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
587 Shares

 

 
470

 
(10)(13)
Total Consumer Goods - Durable
 
 
$
39,287

 
$
39,751

 
 
Consumer Goods – Non-Durable
 
 
 
 
 
 
 
 
 
 
ABG Intermediate Holdings 2, LLC
 
Second Lien Secured Debt
 
9.44% (3M L+775, 1.00% Floor)
 
09/29/25
 
$
8,094

 
$
8,034

 
$
8,215

 
(10)
Sequential Brands Group, Inc.
 
Second Lien Secured Debt
 
10.46% (1M L+900)
 
07/01/22
 
17,248

 
17,085

 
16,933

 
(17)
Total Consumer Goods - Non-Durable
 
 
$
25,119

 
$
25,148

 
 
Consumer Services
 
 
 
 
 
 
 
 
 
 
 
 
1A Smart Start LLC
 
Second Lien Secured Debt
 
11.75% (P+725)
 
08/22/22
 
$
25,100

 
$
24,601

 
$
24,598

 
 
Total Consumer Services
 
 
$
24,601

 
$
24,598

 
 
Containers, Packaging & Glass
 
 
 
 
 
 
 
 
 
 
Sprint Industrial Holdings, LLC
 
Second Lien Secured Debt
 
13.5% PIK
 
11/14/19
 
$
18,451

 
$
18,107

 
$
9,069

 

 
 
Common Equity/Interests - Warrants
 
N/A
 
N/A
 
7,341 Warrants

 

 

 
(13)(29)
 
 
 
 
 
 
 
 
 
 
18,107

 
9,069

 
 
TricorBraun Holdings, Inc.
 
First Lien Secured Debt - Revolver
 
6.75% (P+225)
 
11/30/21
 
1,523

 
1,523

 
1,526

 
(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
11/30/21
 
4,103

 
(396
)
 

 
(21)(23)
 
 
1,127

 
1,526

 
 
Total Containers, Packaging & Glass
 
 
$
19,234

 
$
10,595

 
 

See notes to financial statements.
7

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2017
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

Diversified Investment Vehicles, Banking, Finance, Real Estate
 
 
 
 
 
 
 
 
 
 
Armor Holding II LLC
 
Second Lien Secured Debt
 
10.70% (3M L+900, 1.25% Floor)
 
12/26/20
 
$
8,000

 
$
7,936

 
$
8,110

 
(10)
Craft 2014-1A
 
Structured Products and Other - Credit-Linked Note
 
8.12% (3M L+965)
 
05/15/21
 
27,130

 
27,697

 
26,959

 
(11)(17)
Craft 2015-2
 
Structured Products and Other - Credit-Linked Note
 
9.55% (3M L+925)
 
01/16/24
 
24,869

 
25,746

 
24,375

 
(11)(17)
Golden Bear 2016-R, LLC (3)(4)
 
Structured Products and Other - Membership Interests
 
N/A
 
09/20/42
 

 
16,459

 
15,233

 
(17)
Purchasing Power, LLC
 
First Lien Secured Debt - Revolver
 
9.56% (1M L + 800, 1.00% Floor)
 
07/10/19
 
17,158

 
17,158

 
17,024

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.75% Unfunded
 
07/10/19
 
2,942

 
(169
)
 
(23
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
16,989

 
17,001

 
 
Ten-X, LLC
 
First Lien Secured Debt - Revolver
 
5.25% (1M L+375, 1.00% Floor)
 
09/29/22
 
520

 
520

 
475

 
(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/29/22
 
4,160

 
(400
)
 
(357
)
 
(8)(21)(23)
 
 
 
 
 
 
 
 
 
 
120

 
118

 
 
Total Diversified Investment Vehicles, Banking, Finance, Real Estate
 
 
$
94,947

 
$
91,796

 
 
Energy – Electricity
 
 
 
 
 
 
 
 
 
 
 
 
AMP Solar Group, Inc. (4)
 
Common Equity/Interests - Class A Common Unit
 
N/A
 
N/A
 
243,646 Shares

 
10,000

 
5,114

 
(13)(17)
Renew Financial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AIC SPV Holdings II, LLC (4)
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
534,375 Shares

 
$
534

 
$
1,042

 
(13)(17)(15)
Renew Financial LLC (f/k/a Renewable Funding, LLC) (4)
 
Preferred Equity - Series B Preferred Stock
 
N/A
 
N/A
 
1,505,868 Shares

 
8,343

 
19,027

 
(13)
 
 
Preferred Equity - Series D Preferred Stock
 
N/A
 
N/A
 
436,689 Shares

 
5,568

 
6,663

 
(13)
Renew JV LLC (4)
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
2,115,665 Shares

 
2,116

 
3,019

 
(13)(17)
 
 
 
 
 
 
 
 
 
 
16,561

 
29,751

 
 
Solarplicity Group
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Solarplicity Group Limited (3)(4)
 
First Lien Secured Debt
 
8.00% PIK (8.00% Cash Toggle)
 
11/30/22
 
£
129,626

 
150,352

 
125,714

 
(17)
 
 
Common Equity/Interests - Class B Common Shares
 
N/A
 
N/A
 
2,825 Shares

 
2,472

 

 
(2)(13)(17)(26)
Solarplicity UK Holdings Limited (4)
 
Unsecured Debt
 
8.00% PIK (8.00% Cash Toggle)
 
02/24/22
 
£
2,000

 
2,499

 
2,705

 
(17)
 
 
Common Equity/Interests - Ordinary Shares
 
N/A
 
N/A
 
2,825 Shares

 
4

 
5,212

 
(2)(13)(17)
 
 
 
 
 
 
 
 
 
 
155,327

 
133,631

 
 
Westinghouse Electric Co LLC
 
First Lien Secured Debt
 
7.82% (1M L+625, 1.00% Floor)
 
03/31/18
 
40,000

 
39,727

 
40,000

 
(9)
Total Energy – Electricity
 
 
$
221,615

 
$
208,496

 
 
Energy – Oil & Gas
 
 
 
 
 
 
 
 
 
 
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5)
 
First Lien Secured Debt
 
8.00% Cash (10.00% PIK Toggle)
 
03/29/19
 
$
15,000

 
$
15,000

 
$
15,000

 
(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
03/29/19
 
5,000

 

 

 
(21)(23)
 
 
Second Lien Secured Debt
 
10.00% PIK (8.00% Cash Toggle)
 
03/29/21
 
29,760

 
29,760

 
29,760

 


See notes to financial statements.
8

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2017
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

 
 
Common Equity/Interests - Common Stock
 
N/A
 
N/A
 
5,000,000 Shares

 
30,078

 
19,995

 
(13)
 
 
 
 
 
 
 
 
 
 
74,838

 
64,755

 
 
Pelican Energy, LLC (4)
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
1,444 Shares

 
24,730

 
11,755

 
(13)(17)
SHD Oil & Gas, LLC (5)
 
First Lien Secured Debt - Tranche A Note
 
14.00% (8.00% Cash plus 6.00% PIK)
 
12/31/19
 
42,794

 
42,794

 
44,078

 

 
 
First Lien Secured Debt - Tranche B Note
 
14.00% PIK
 
12/31/19
 
70,755

 
44,380

 
33,738

 
(13)(14)
 
 
First Lien Secured Debt - Tranche C Note
 
12.00%
 
12/31/19
 
18,000

 
18,000

 
18,540

 

 
 
Common Equity/Interests - Series A Units
 
N/A
 
N/A
 
7,600,000 Shares

 
1,411

 

 
(13)
 
 
 
 
 
 
 
 
 
 
106,585

 
96,356

 
 
Total Energy – Oil & Gas
 
 
$
206,153

 
$
172,866

 
 
Food & Grocery
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bumble Bee Foods
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bumble Bee Holdings, Inc.
 
First Lien Secured Debt
 
9.44% (3M L+800, 1.00% Floor)
 
08/15/23
 
$
15,546

 
$
15,249

 
$
15,235

 
 
Connors Bros Clover Leaf Seafoods Company
 
First Lien Secured Debt
 
9.44% (3M L+800, 1.00% Floor)
 
08/15/23
 
4,404

 
4,320

 
4,316

 
 
 
 
 
 
 
 
 
 
 
 
19,569

 
19,551

 
 
Grocery Outlet, Inc.
 
Second Lien Secured Debt
 
9.94% (3M L+825, 1.00% Floor)
 
10/21/22
 
25,000

 
24,772

 
25,125

 
(10)
Total Food & Grocery
 
 
$
44,341

 
$
44,676

 
 
Healthcare & Pharmaceuticals
 
 
 
 
 
 
 
 
 
 
Altasciences
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9360-1367 Quebec Inc.
 
First Lien Secured Debt
 
7.94% (3M L+625, 1.00% Floor)
 
06/09/23
 
C$
2,430

 
$
1,773

 
$
1,896

 
(9)(17)
 
 
First Lien Secured Debt
 
7.94% (3M L+625, 1.00% Floor)
 
06/09/23
 
$
2,913

 
2,854

 
2,848

 
(9)(17)
Altasciences US Acquisition, Inc.
 
First Lien Secured Debt
 
7.94% (3M L+625, 1.00% Floor)
 
06/09/23
 
5,261

 
5,154

 
5,143

 
(9)
 
 
First Lien Secured Debt - Revolver
 
7.94% (3M L+625, 1.00% Floor)
 
06/09/23
 
285

 
285

 
279

 
(9)(23)(28)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.50% Unfunded
 
06/09/23
 
2,851

 
(32
)
 
(64
)
 
(8)(9)(21)(23)(28)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.25% Unfunded
 
06/09/23
 
1,141

 
(29
)
 
(27
)
 
(8)(9)(21)(23)(28)
 
 
 
 
 
 
 
 
 
 
10,005

 
10,075

 
 
Aptevo Therapeutics Inc.
 
First Lien Secured Debt
 
9.16% (1M L+760)
 
02/01/21
 
8,571

 
8,671

 
8,506

 
(9)
Argon Medical Devices Holdings, Inc.
 
Second Lien Secured Debt
 
9.38% (3M L+800, 1.00% Floor)
 
10/27/25
 
21,600

 
21,492

 
21,708

 
(10)
Avalign Technologies, Inc.
 
Second Lien Secured Debt
 
9.71% (6M L+825, 1.00% Floor)
 
09/02/24
 
5,500

 
5,448

 
5,514

 
 
BioClinica Holding I, LP
 
Second Lien Secured Debt
 
9.63% (3M L+825, 1.00% Floor)
 
10/21/24
 
24,612

 
24,189

 
23,874

 
(10)
Elements Behavioral Health, Inc.
 
Second Lien Secured Debt
 
14.44% (3M L+1275, 1.00% Floor)
 
02/11/20
 
12,353

 
11,911

 
865

 
(13)(14)
Invuity, Inc.
 
First Lien Secured Debt
 
8.07% (1M L+650, 1.50% Floor)
 
03/01/22
 
10,000

 
9,834

 
9,808

 
(9)
 
 
First Lien Secured Debt - Revolver
 
4.82% (1M L+325, 1.50% Floor)
 
03/01/22
 
969

 
969

 
964

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
03/01/22
 
1,031

 
(8
)
 
(5
)
 
(8)(9)(21)(23)
 
 
Warrants - Warrants
 
N/A
 
N/A
 
32,803 Warrants

 
180

 
129

 
(9)
 
 
 
 
 
 
 
 
 
 
10,975

 
10,896

 
 

See notes to financial statements.
9

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2017
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

</